The Stellar price has been in a tight range recently even as the other altcoins rebound. The XLM price is trading at $0.3775, which is about 86% above the lowest level in July. The coin has barely moved in the past few days. It has a market capitalization of more than $8.8 billion and is the 20th biggest coin in the world.
XLM rally pauses
Stellar Lumens price surged to an all-time high of $0.8015 in May this year. Like all other cryptocurrencies, the price made a major pullback in July that saw its price drop to $0.2028. Recently, however, the coin has made some modest recovery as investors cheer the rumours that the Stellar Development Foundation was in talks to acquire MoneyGram. These rumours are yet to be confirmed.
Another major catalyst was that Bitso, a leading LATAM exchange recently started implementing Stellar USDC for its customers.
The XLM price has also rebounded because of the overall bullishness of other cryptocurrencies. This rally happened as more traders moved into cryptocurrencies. Indeed, the prices of other coins has jumped substantially, with Bitcoin surging to more than $50,000. Ethereum has also moved above $3,300 while the total market capitalization of all cryptocurrencies tracked by CoinMarketCap has jumped to more than $2.145 billion.
Meanwhile, there are reports hat a major XLM investor moved more than 109 million to Coinbase. The transfer was spotted by Whale Alert, a leading cryptocurrencies bot.
Stellar price prediction
The daily chart shows that the XLM price formed a double-bottom pattern slightly below $0.200. In price action, a double bottom pattern is usually a bullish pattern. Another signal was shown in MACD, whose two lines have been moving in a bullish momentum. The 25-day and 50-day moving averages have also made a bullish crossover. If this happens, the next key level to watch will be the resistance at $0.50. On the flip side, a drop below the support at $0.30 will invalidate this view.
Read More: XLM Rally Has Faded. What Next?